2008 Honda Crv Exl/wnavigation on 2040-cars

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Japan could consolidate to three automakers by 2020

Sergio Marchionne might see his dream of big mergers in the auto industry become a reality, and an analyst thinks Japan is a likely place for consolidation to happen. Takaki Nakanishi from Jefferies Group LLC tells Bloomberg the country's car market could combine to just three or fewer major players by 2020, from seven today. "To have one or two carmakers in a country is not only natural, but also helpful to their competitiveness," Nakanishi told Bloomberg. "Japan has just too many and the resources have been too spread out. It's a natural trend to consolidate and reduce some of the wasted resources." Nakanishi's argument echoes Marchionne's reasons to push for a merger between FCA and General Motors. Automakers spend billions on research and development, but their competitors also invest money to create the same solutions. Consolidating could conceivably put that R&D money into new avenues. "In today's global marketplace, it is increasingly difficult for automakers to compete in lower volume segments like sports cars, hydrogen fuel cells, or electrified vehicles on their own," Ed Kim, vice president of Industry Analysis at AutoPacific, told Autoblog. Even without mergers, these are the areas where Japanese automakers already have partners for development. Kim cited examples like Toyota and Subaru's work on the BRZ and FR-S and its collaboration with BMW on a forthcoming sports car. Honda and GM have also reportedly deepened their cooperation on green car tech. After Toyota's recent buyout of previous partner Daihatsu, Nakanishi agrees with rumors that the automotive giant could next pursue Suzuki. He sees them like a courting couple. "For Suzuki, it's like they're just starting to exchange diaries and have yet to hold hands. When Toyota's starts to hold 5 percent of Suzuki's shares, this will be like finally touching fingertips," Nakanishi told Bloomberg. "I absolutely do believe that we are not finished seeing consolidation in Japan," Kim told Autoblog. Rising development costs to meet tougher emissions regulations make it hard for minor players in the market to remain competitive. "The smaller automakers like Suzuki, Mazda, and Mitsubishi are challenged to make it on their own in the global marketplace. Consolidation for them may be inevitable." Related Video:

US Congress lets $8,000 hydrogen vehicle tax credit expire

When Toyota introduced the 2016 Mirai last month in preparation for a launch late next year, it said that the hydrogen car will have a $57,500 MSRP and that there will be a federal tax credit available worth up to $8,000. The problem, as we noted at the time, is that that federal credit was set to expire at the end of 2014. The technical language of the current rule says that someone who buys a fuel cell vehicle, "may claim a credit for the certified amount for a fuel cell vehicle if it is placed in service by the taxpayer after Dec. 31, 2005, and is purchased on or before Dec. 31, 2014." With the 113th Congress now finished up for the year and legislators headed home for the holidays, we know one thing for certain: the federal tax credit for hydrogen vehicles was not updated and will end as we're all singing Auld Lang Syne next week. All of this isn't to say that Mirai buyers won't be able to take $8,000 off the price of the car 12 months from now. For proof of that, we only need to look at other alternative fuel tax incentives and realize that this Congress simply isn't moving fast enough to deal with things that are expiring right now. One of the last things that the 113th Congress did in December was to take up the tax credits that expired at the end of 2013 and renew some of them. Jay Friedland, Plug In America's senior policy advisor, told AutoblogGreen that PIA and other likeminded organizations worked with Congress to extended the electronic vehicle charging station (technically: EVSE) tax credit that was part of the Alternative Refueling Tax Credit in IRS Section 30(C) through the end of 2014. "Individuals can deduct 30 percent of the cost of purchasing and installing an EVSE up to $1,000; businesses, 30 percent up to $30,000," he said. "This tax credit is applied to any system placed into service by 12/31/14 and is retroactive to the beginning of the year. So go out and buy your favorite EV driver an EVSE for the holidays," he said. An electric motorcycle credit was killed at the last minute as Congress was getting ready to leave, but H.R. 5771 did extend the Alternative Fuels Excise Tax Credits for liquefied hydrogen and other alternative fuels. These sorts of tax credit battles happen all year long. In July, Blumenthal introduced the Fuel Cell and Hydrogen Infrastructure Act of 2014, which never got out of the Finance Committee. Back to the hydrogen vehicle situation.

Junkyard Gem: 2000 Honda Passport 4WD

The suits at American Honda Motor Company must have spent the bulk of the 1990s tearing out their hair in frustration as their rivals raked in big money from the sales of ever-more-profitable SUVs, even as American car shoppers lost interest in sedans and hatchbacks. Oh, sure, the Civic-based CR-V appeared here for the 1997 model year and sold well enough, but the lack of a larger SUV pained Honda more with each passing year. With the Acura MDX and Honda Pilot not ready for showrooms until the 2001 and 2002 model years, respectively, some stopgap had to be found. Isuzu stepped up and made a deal with Honda: the Rodeo would get Honda badges and become the Passport, while the Trooper would show up in Acura showrooms with SLX badges (for the 1994 and 1995 model years, respectively). Here's one of those Passports, found in a Denver-area self-service yard. Things got even weirder in the Isuzu/Honda world around the turn of the century, with the Honda Odyssey getting Isuzu badges and being sold as the Oasis. Fast-forward to 2009, and the only Isuzu-badged vehicles available new here were rebadged Chevrolets: the I-Series pickup (Chevy Colorado) and the Ascender (Chevy Trailblazer). The Passport name has some interesting American Honda history, stretching back to the first Honda vehicle sold here (and the biggest-selling motor vehicle in human history): the Super Cub. American Honda Motor Company couldn't use the Super Cub name on our shores, because Piper Aircraft had been selling a small plane called the Super Cub since 1949, so the motorcycle was called the Honda 50 over here. Eventually, this bike got a 70cc engine and became the Honda C70 Passport, sales of which continued through the middle 1980s. That means the Passports sitting in your local Honda dealership right now got their name from a one-cylinder motorcycle. General Motors has a Passport connection as well; when GM created the Geo brand to sell rebadged Isuzus, Suzukis, and Toyotas in the United States, it created a marque called Passport to sell the Daewoo LeMans as the Optima in Canada (all the other vehicles sold by Passport dealers were Isuzus). So, Honda's need to offer SUVs in its American dealerships led to an arrangement with GM-connected Isuzu to sell these trucks with a model name bearing links to both companies. So much history in the junkyard! Just as Geo-badged Toyota Corollas (mostly) got Delco radios, so did the Passport get Honda radios.